Warner Bros. Discovery says its reviewing Paramount's new bid - Los Angeles Times

Los Angeles Times

by Meg James

February 24, 2026

AI-Generated Deep Dive Summary

Warner Bros. Discovery has revealed that it is reviewing a revised bid from Paramount Skydance for its company. While Warner’s board continues to support Netflix’s $82.7 billion deal, which was agreed upon earlier, they are now evaluating Paramount’s updated offer. This development comes after Netflix allowed Warner to extend negotiations with Paramount for one week, during which Paramount submitted its “best and final” proposal. The situation is significant due to the high stakes involved. Warner Bros. Discovery owns major media assets, including CNN, HBO, TBS, and the Warner Bros. movie studios. Netflix’s deal excludes certain cable channels like CNN and TBS, which are set to be spun off into a new company later this year. Paramount, backed by Oracle co-founder Larry Ellison, argues that its all-encompassing bid would better serve shareholders by including these channels. Warner’s board has consistently endorsed Netflix’s offer, citing the streaming giant’s stronger financial backing and regulatory approval prospects. However, Paramount claims its deal is more lucrative and less risky, with Ellison personally guaranteeing significant equity financing to secure the takeover. This has led to intense competition between the two bidders, with Paramount even agreeing to cover a $2.8 billion breakup fee if Warner were to abandon Netflix’s deal. The race for Warner Bros. Discovery has sparked political interest, with Republican lawmakers and former President Trump criticizing Netflix’s dominance in the streaming industry. Trump has even threatened Netflix over its board member Susan Rice, adding another layer of complexity to the situation. Meanwhile, Warner is consulting with top financial and legal advisors to navigate this high-stakes decision. This bidding war highlights broader concerns about media consolidation and competition in the streaming landscape. The outcome could reshape Hollywood’s future, impacting not only Warner Bros. but also the wider entertainment industry. As regulatory bodies like the Department of Justice investigate potential anti-competitive effects, the stakes remain high for all parties involved.

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Originally published on Los Angeles Times on 2/24/2026